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prepared by Investor Relations department BTS Group Holdings PCL
BTS Group Holdings PCL
GROUP GENERAL PRESENTATION FEBRUARY 2014
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
IR Contacts
2
This document has been prepared and distributed by the Investor Relations Department of BTS Group Holdings Plc. (“BTSG”) solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in BTSG and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. BTSG does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of BTSG or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. All information contained in this document is presented as of the date indicated within, and BTSG assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, BTSG assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. BTSG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Disclaimer
Address: BTS Group Holdings PCL IR Department 15th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand 10900 Telephone: +66(0) 2273 8611-15 Fax: +66(0) 2273 8610 Email: ir@btsgroup.co.th Website: www.btsgroup.co.th
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
Contents
3
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group History
4
Company established as Tanayong Co., Ltd. to operate in property development field
Tanayong listed on The Stock Exchange of Thailand under Property Development sector
Tanayong established a wholly-owned subsidiary, Bangkok Transit System Corporation Ltd. (BTSC), which won the SkyTrain concession bid
Commercial operation of the BTS SkyTrain began
BTSC exit court supervised rehabilitation procedure
BTSC expanded into Media business through the acquisition of 100% of VGI Global Media Co., Ltd.
Tanayong acquired 94.6% of BTSC, returning Mass Transit operations to be the primary business of the Company. The Company also changed its name to BTS Group Holdings PCL
1968 1991 1992 2008 2009 1999 2010 2012 2013
MAY: BTSC signed a 30-year operating & maintenance (O&M) contract covering all Green Line extensions under the purview of the Bangkok Metropolitan Administration (BMA) OCT: The Group’s Media subsidiary, VGI Global Media PCL, listed on The Stock Exchange of Thailand
APR: BTSC sold the future Net Fare-box Revenue under its Concession Agreement to BTS Rail Mass Transit Infrastructure Fund (BTSGIF)
BTSG Group General Presentation Section 1: BTSG Group Holdings PCL
prepared by Investor Relations department BTS Group Holdings PCL
Shareholding Structure
5
KANJANAPAS FAMILY OTHERS
BTSC
MEDIA2 PROPERTY2 SERVICES2
1 Information based on the close book date as at 28 Jan 14 with total issued shares = 11,914.2mn shares 2 Major subsidiaries and associates only. Please see the full shareholding structure of the Company in Appendix 1: Shareholding Structure 3 BTSG holds 60.5% in VGI indirectly and directly
INSTITUTIONAL INVESTORS1
10.8%
41.7%1 21.8%1 36.5%1
BTS GROUP
97.5%
VGI BTS ASSETS CO., LTD. TANAYONG INTERNATIONAL LTD.
NUVO LINE AGENCY CO., LTD.
CARROT REWARDS CO., LTD.
HHT CONSTRUCTION CO., LTD.
BANGKOK SMARTCARD SYSTEM
CO., LTD.
100%
80.0%
100%
100%
100%
51.0%
90.0%
51.0%3
THANA CITY GOLF & SPORTS CLUB CO., LTD.
BTSGIF
33.3%
BTSG Group General Presentation Section 1: BTSG Group Holdings PCL
MAN KITCHEN CO., LTD.
Listed entities
MASS TRANSIT2
70.0%
prepared by Investor Relations department BTS Group Holdings PCL
- 1 43
136
FY 10/11 FY 11/12 FY 12/13 9M 13/14
661 728
1,523
2,653
FY 10/11 FY 11/12 FY 12/13 9M 13/14
1,370 1,959
2,795 2,489
FY 10/11 FY 11/12 FY 12/13 9M 13/14
3,861 5,177 6,016
1,713
FY 10/11 FY 11/12 FY 12/13 9M 13/14
BTS Group Overview 4 Business Units
6
MASS TRANSIT
PROPERTY
MEDIA
SERVICES
(1) Figures are calculated by combining revenues of each business without consideration of eliminating transactions of related parties in order to present performance of particular business unit (2) FY ended 31 March (3) Services revenue excludes revenue of HHT Construction (Thailand) Co., Ltd. as it is consolidated as cost of project under property business
Historical operating revenues(1&2)
Media Revenue (THB mn)
Property Revenue (THB mn)
Services Revenue(3) (THB mn)
Mass Transit Revenue (THB mn)
25%
36%
38%
2%
BTSG Group General Presentation Section 1: BTSG Group Holdings PCL
Revenue contribution
58%
27%
15%
0%
FY 12/13 9M 13/14
FY 12/13 9M 13/14
FY 12/13 9M 13/14
FY 12/13 9M 13/14
prepared by Investor Relations department BTS Group Holdings PCL
BTSG at a glance
7
KEY FIGURES (as of 31 Mar 2013)
EMPLOYEES (as of 31 Mar 2013)
PROGRESSIVE DIVIDEND POLICY
SHARE INFORMATION (as of 31 Dec 2013)
MASS TRANSIT 1,969 MEDIA 475
PROPERTY 763 SERVICES 150
THB (mn) USD (mn)*
OPERATING REVENUE 10,375 323
OPERATING EBITDA 5,273 164
NET INCOME 2,736 85
TOTAL ASSETS 67,031 2,089
TOTAL 3,420
STOCK CODE BTS
OUTSTANDING SHARES (MN SHARES) 11,914.2
MARKET CAPITALISATION (THB MN) 103,653.8
MARKET CAPITALISATION (USD MN) 3,156.3
AVERAGE DAILY TRADED VALUE (THB MN) 656.3
AVERAGE DAILY TRADED VALUE (USD MN) 20.7
*Source: Bank of Thailand, based on weighted-average Interbank Exchange Rate of USD 1 = THB 32.089 as of 31 Aug 2013
Minimum THB 21bn dividend over the next 3 years
No less than THB 6bn in 2013/14
No less than THB 7bn in 2014/15
No less than THB 8bn in 2015/16
Not less than 50% of net profit (stand alone basis)
BTSG Group General Presentation Section 1: BTSG Group Holdings PCL
BTS GROUP HOLDINGS 63
prepared by Investor Relations department BTS Group Holdings PCL
Investment Highlights
8 BTSG Group General Presentation Section 1: BTSG Group Holdings PCL
GROWTH
INCREASE IN RIDERSHIP: Prime beneficiary of mass transit development and market share shift from bus to rail. Increasing ridership on Core network; increasing ‘eyeballs’ for BTS-related media
GROWING WITH RETAIL PARTNERS: automatic rights to manage advertising space in new Modern Trade branches
SHAREHOLDER RETURN
HIGH DIVIDEND YIELD: 3-year progressive dividend policy with minimum committed amount of THB 21bn SECURE BUSINESS: underlying concession with advertising rights on BTS until 2029; O&M contract until
2042
OPPORTUNITIES
STRONG FINANCIAL POSITION: BTS Group has excess cash and liquid investments of THB 42.7bn FUTURE MASS TRANSIT LINES: potential developer and operator of future mass transit lines and
extensions EXPANSION OF FRANCHISE: expansion of VGI Global Media franchise to new extension lines and
other markets
prepared by Investor Relations department BTS Group Holdings PCL
2,015 2,748
4,359
10/11 11/12 12/13
2,549
4,141 5,273
10/11 11/12 12/13
Key Developments 2012/13
9
Full year effect of extension On Nut – Bearing Additional rolling stocks into services Organic growth and urbanisation
RIDERSHIP
12.0%
OPERATING EBITDA
27.3%
Economies of scale from scalable ridership Increase in operating revenues especially from Mass Transit & Media
MEDIA REVENUE
42.7%
New sales floor advertising contracts from Tesco Lotus, Big C New advertising space on new trains
DIVIDEND PAYMENT
THB 4.4bn
145 176
197
10/11 11/12 12/13
mn passengers
1,371
1,959
2,795
10/11 11/12 12/13
THB mn
THB mn
THB mn
BTSG Group General Presentation Section 1: BTSG Group Holdings PCL
prepared by Investor Relations department BTS Group Holdings PCL
Contents
10
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
THB 1.5bn
>THB 10bn
2013 2018 TARGET
6x
36.3km
114.8km
2013 2018 TARGET
3x
BTS Group Vision 2018
11 BTSG Group General Presentation Section 2.1: Mass Transit Business
“TO BE THAILAND’S LEADING MASS TRANSIT DEVELOPER AND OPERATOR”
3X BKK MASS TRANSIT COVERAGE
6X MASS TRANSIT O&M REVENUE
O&M = Operation and Maintenance
MASS TRANSIT RAIL LENGTH TARGETS (KM)
T = Target
74.2 79.5 84.8
236
390
508
31.0 31.0 36.3
114.8
2010 2011 2013T 2016T 2019T 2029T
Target Network Length in KM (OTP)
BTS Target Distance in KM
prepared by Investor Relations department BTS Group Holdings PCL
Role of BTS Group in Mass Transit Investor, Operator, Developer, Concessionaire
12
OPERATOR OF CORE NETWORK EXTENSIONS DEVELOPER OF RAIL MASS TRANSIT
BTS GROUP
ROLE IN MASS TRANSIT
OPERATOR OF BTS SKYTRAIN CORE NETWORK
Underlying assets have 13 year track record Growth & resilience characteristics Stable and growing dividend yield Full beneficiary of
Ridership growth Fare increases Operating leverage until Dec 2029
Exclusive operator of BTS SkyTrain Core Network (23.5km) 13 year track record Operate at cost, but potential benefit from incentive fee Limited CAPEX, large CAPACITY Remain legal concessionaire
Appointed to operate & maintain Green line by the Bangkok Metropolitan Administration (BMA) Track record since 2009 30-year contract covering Green line extensions (12km) from 2012 - 2042 Also covers Core network (23.5km) from 2029 to May 2042 No ridership risk
Original developer of BTS Core SkyTrain network Expertise as well as financial capability to invest in future mass transit lines
33.3% INVESTMENT IN BTSGIF
O
O
D
I
BTSG Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
Bangkok Rail Mass Transit Master Plan 508 km by 2029, 42.4% share of mass transit commute by 2032
13
Source: Office of Transportation and Traffic Policy and Planning
BTSG Group General Presentation Section 2.1: Mass Transit Business
Source: United Nations Statistics Division, BTSC, BMCL, MTR Corporation Limited, SMRT Corporation Limited, official websites of rail mass transit system in major cities
Seoul 51% Hong Kong 46% Singapore 40% Tokyo 36% Guangzhou 17% Bangkok 6%
RAIL MASS TRANSIT MARKET SHARE*
Hong Kong 34.7 Singapore 34.2 Tokyo 24.2 Bangkok 7.6
PERVASION (per million population)
Source: OTP, Singapore’s Land Transport Authority, Hong Kong’s Transport Department, MTR Corporation Limited, SMRT Corporation Limited, Japan Statistic Bureau
(rail track length per mn population)
* Percentage of people using rail mass transit over other forms of mass transit
prepared by Investor Relations department BTS Group Holdings PCL
Existing Bangkok Mass Transit Network Immature network, 84.8km as of 2013
14 BTSG Group General Presentation Section 2.1: Mass Transit Business
LINE ROUTE DISTANCE
(KM) OPERATING
SINCE
DARK GREEN (CORE)
MO CHIT – ON NUT 17.0 DEC 99
LIGHT GREEN (CORE)
NATIONAL STADIUM – SAPHAN TAKSIN
6.5 DEC 99
BLUE BANG SUE –
HUA LAMPHONG 20.0 JUL 04
LIGHT GREEN (EXTENSION)
SAPHAN TAKSIN – WONGWIAN YAI
2.2 MAY 09
RED LINE AIRPORT LINK
PHAYATHAI – SUVARNABHUMI
28.5 AUG 10
DARK GREEN (EXTENSION)
ON NUT – BEARING 5.3 AUG 11
LIGHT GREEN (EXTENSION)
WONGWIAN YAI – BANG WA
5.3 DEC 13
EXISTING LINES - 84.8KM; 60 STATIONS
CORE NETWORK
3 RAIL MASS TRANSIT OPERATORS
BTS: 36.3km (SkyTrain)
BMCL: 20.0km (Underground)
SRT: 28.5km (Airport Rail Link)
LIGHT GREEN NATIONAL STADIUM – BANG WA 14.5km
DARK GREEN MO CHIT – BEARING 21.8km
BLUE BANG SUE - HUA LAMPHONG 20.0km
RED PHAYATHAI - SUVARNABHUMI 28.5km
EXTENSIONS TO OUR CURRENT CORE NETWORK
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group: INVESTOR in BTSGIF (Core Network) Prime position to capture growth from Network Expansion
15
BTSGIF has the rights to receive NET FAREBOX REVENUE collected by BTSC on the SkyTrain Core Network until Dec 2029
Formerly these revenues were retained by BTSC in accordance with the terms and conditions of its Concession Agreement with the BMA on the core network*
In Apr 2013, BTSC SOLD THE RIGHTS TO NET FAREBOX REVENUE under its concession agreement for the BTS SKYTRAIN CORE NETWORK to BTSGIF
NO REVENUE SHARING TO BMA
BTS Group used the proceeds to purchase 1/3 units in BTSGIF which is the maximum permitted amount under SEC regulations
BTS Group is subject to a lock up of 10 years on these units
*See Appendix 2 for details of Concession Agreement
WHAT IS BTSGIF?
WHAT IS THE CORE NETWORK?
23 stations, 23.5km located at the heart of Bangkok Inaugural Mass Transit route, operated since Dec 1999 NO REVENUE SHARING TO BMA
I
BTSG Group General Presentation Section 2.1: Mass Transit Business
DARK GREEN MO CHIT – ON NUT 17.0km
LIGHT GREEN NATIONAL STADIUM - SAPHAN TAKSIN 6.5km
prepared by Investor Relations department BTS Group Holdings PCL
1,4
19
1,7
80
2,1
22
2,2
94
2,5
73
2,8
17
3,0
66
3,2
24
3,2
92
3,4
85
3,5
45
4,2
97
4,8
96
59
79
96 105
118
132 139
133 136 144 145
176
197
-
20
40
60
80
100
120
140
160
180
200
-
1,00 0
2,00 0
3,00 0
4,00 0
5,00 0
6,00 0
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Farebox revenue (THB mn) Ridership (mn)
BTS Group: INVESTOR in BTSGIF (Core Network) Uninterrupted revenue growth and resilient under pressure
16
Jul 04: Opening of Bangkok MRT System (Blue line)
May 09: Opening of Silom Line extension
May 10: Opening of Bangkok BRT;
Thai political protests
Aug 10: Opening of Airport Rail Link
Aug 11: Opening of On Nut – Bearing extension
Oct – Nov 11: Floods
INITIAL GROWTH RIDERSHIP CAGR (3 YRS): 21%
STABLE GROWTH RIDERSHIP CAGR (5 YRS): 7%
FASTER GROWTH RIDERSHIP CAGR (4 YRS) 10%
Dec 99: BTS SkyTrain service opening
Mar 07: First fare rate increase
I
BTSG Group General Presentation Section 2.1: Mass Transit Business
Farebox revenue CAGR: 10.9% Ridership CAGR: 10.6%
GROWTH (12 YRS)
prepared by Investor Relations department BTS Group Holdings PCL
21
.4
22
.1
24
.2
24
.2
24
.2
24
.4
24
.4
24
.8
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
BTS Group: INVESTOR in BTSGIF (Core Network) Flexibility to increase fares
17
NO. OF STATIONS
FARE ADJUSTMENT MECHANISM
Can be adjusted no more than once every 18 months by making announcement to BMA and public 30 days in advance Must not exceed the Authorised fare
EFFECTIVE FARE
Normal situation: upon change of Bangkok’s CPI >=5%, may adjust up to 7% (No approval required)
Special situation: upon change of CPI (>= 9%), USD/THB foreign exchange rate, interest rate or electricity costs (BMA approval
required)
AUTHORISED FARE
HISTORICAL AVERAGE FARE RIDERSHIP BY TICKET TYPES (FY 12/13)
SJT 46% AVG FARE THB 27.1
30-DAY PASS (STUDENT) 8% AVG FARE THB 18.9
30-DAY PASS (ADULT) 28% AVG FARE THB 22.8
SKY PASS (STV) 17% AVG FARE THB 24.3
ONE-DAY PASS 1% AVG FARE THB 33.9
I
BTSG Group General Presentation Section 2.1: Mass Transit Business
DISTANCE-BASED FARE (BY NO. OF STATIONS)
20.1
26.8
33.5
40.2
46.9
53.6
60.3
15.0
22.3 25.0
28.0 31.0
34.0 37.0
42.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
AUTHORISED FARE
EFFECTIVE FARE
POTENTIAL FARE UPSIDE
THB / Trip
THB
prepared by Investor Relations department BTS Group Holdings PCL
57.1%
32.9%
45.7%
67.5%
27.3%
41.7%
BTSC SkyTrain Singapore MRT HK MTR
FY2011 FY2012
BTS Group: INVESTOR in BTSGIF (Core Network) Efficient operation; further scope for cost efficiency
18
COST EFFICIENCY
& OPERATING LEVERAGES
STRONG RIDERSHIP GROWTH ALONG WITH SUSTAINED MARGIN EXPANSION
CORE COSTS AND SG&A BREAKDOWN
144 145
176
197
54.9% 57.1%
67.5% 67.8%
0.0 %
10. 0%
20. 0%
30. 0%
40. 0%
50. 0%
60. 0%
70. 0%
80. 0%
100
150
200
250
2009/10 2010/11 2011/12 2012/13
Core BTS SkyTrain Ridership (mn) Core BTS SkyTrain op EBITDA margin (%)
367 387 391 417 377 365 344
59
171 200
59
40 27 11
250
300
350
400
450
500
550
600
650
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Major overhaul expenses General maintenance expense
(THB mn)
EBITDA MARGIN COMPARISON (CORE ONLY)
MAINTENANCE EXPENSES BREAKDOWN
I
BTSG Group General Presentation Section 2.1: Mass Transit Business
DEPRECIATION & AMORTISATION 46%
ELECTRICITY 9%
SECURITY GUARD & CLEANING EXP 4%
OTHERS 8%
STAFF COST 21%
MAINTENANCE 12%
prepared by Investor Relations department BTS Group Holdings PCL
ESTIMATED FLEET***
X7 28 +54.3%
70
+100.0%
TOTAL CURRENT FLEET X59 306
CURRENT FLEET NO. OF TRAINS TOTAL CARRIAGES CAPACITY INCREASE (CUMULATIVE)
INDICATIVE CAPEX (THB mn)
X35 105 FULLY PAID
X12 48
35
+22.9%
FULLY PAID
~THB 2.3bn (paid ~THB 2.0bn)
X5 20
+35.9%
~THB 1.2bn (paid ~THB 1.1bn)
TOTAL CURRENT FLEET X52 208
BTSGIF Investment Core Concession for BTS Core SkyTrain network Ample capacity with limited Capex for concession period
19
SYSTEM DESIGN
CAPACITY
OF 50,000 PPHPD*
CURRENT CAPACITY
OF 24,000** PPHPD
Already operated in May 2013
Expect to order in 2017, expect to be delivered in 2019
* Based on 2 assumptions: i) 6-car trains in service and ii) 2 min headway ** Based on Sukhumvit Line morning peak time *** Based on existing contracts (core network and O&M contracts up to 2042)
BTSG Group General Presentation Section 2.1: Mass Transit Business
Expected required by 2032
Fully operated by Feb 2014
prepared by Investor Relations department BTS Group Holdings PCL
BTSC is the OPERATOR of the Core Network Thailand’s most experienced Operator
20
Reliable Operations Team with 13-year track record Impeccable safety record Strong management expertise
OPERATED & MAINTAINED THE CORE NETWORK SINCE 5 DEC 1999
REMAINS THE CORE NETWORK OPERATOR FOLLOWING
ESTABLISHMENT OF BTSGIF
BTSC operates the Core Network on behalf of BTSGIF It deducts OPEX and CAPEX at cost (no margin) BTSC receives an incentive fee from BTSGIF
Net Farebox Revenue (transferred to BTSGIF daily)
FAREBOX REVENUE OPERATING EXPENSES
CAPITAL EXPENDITURE
Incentive Fee
All farebox revenue from passengers in the Core BTS SkyTrain system
Other revenue and compensation from any person under, arising out of or relating to concession or the farebox revenue of the Core BTS SkyTrain system
Excludes revenue from O&M business extension, media business and revenue from BTSC’s other business
Cost relevant to the Core BTS SkyTrain system such as maintenance capital expenditure, labor, electricity, etc.
New rolling stock for the Core BTS SkyTrain system to serve future ridership
net of PAYABLE BY BTSGIF TO BTSC ONLY WHEN NET FAREBOX REVENUE EXCEEDS BUDGET
1. NO INCENTIVE FEE If actual Net Farebox Revenue ≤ 100 of Budget 2. 10% INCENTIVE FEE On actual amount exceeding 100% but not exceeding 125% of Budget 3. FEE FROM ITEM 2 PLUS 15% OF THE
INCREMENTAL AMOUNT EXCEEDING 125%
If actual amount > 125% of Budget
O
BTSG Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
BTSC: OPERATOR of Green Line Extensions 12km of extensions already under contract
21
8% 15% 19%
O&M Contribution (% of Mass Transit revenue)
FY 09/10 FY 11/12 FY 12/13
BTSC has operated & maintained the extensions since 2009
Agreed fee income with no ridership risk 30-year contract now covers:
11 stations/12km extensions (May 2012 – May 2042) 23 stations/ 23.5km Core Network (Dec 2029 – May 2042)
Existing extensions LIGHT GREEN: Saphan Taksin - Wongwian Yai
(2.2km/2 stations) DARK GREEN: On Nut – Bearing
(5.3km/5 stations) LIGHT GREEN: Wongwian Yai - Bang Wa
(5.3km/4 stations)
2012 2015* 2031
2042
THB 1,700 mn
THB 6,000 mn
O&M CORE
Year
CAGR 3.8%
CAGR 3.8% O&M EXTENSION
Note: Including full year effect of Wongwian Yai – Bang Wa extension
O&M figures (excluding VAT)
O
BTSG Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
LINE ROUTE OPERATE YEAR CONSTRUCTION PROGRESS DISTANCE (KM)
LIGHT RED BANG SUE - TALINGCHAN 2012 UNDER CONSTRUCTION 15.0
PURPLE BANG YAI - BANG SUE 2015 UNDER CONSTRUCTION 23.0
BLUE HUA LAMPHONG - BANG KHAE 2016 UNDER CONSTRUCTION 14.0
BLUE BANG SUE - THA PRA 2016 UNDER CONSTRUCTION 13.0
DARK RED BANG SUE - RANGSIT 2017 UNDER CONSTRUCTION 26.3
DARK GREEN BEARING - SAMUT PRAKARN 2017 UNDER CONSTRUCTION 12.8
DARK GREEN MO CHIT – SAPHAN MAI 2017 11.4
LRT BANG NA - SUVARNABHUMI 2017 18.3
PINK LINE KHAE RAI – PAK GRED – MIN BURI 2017 36.0
DARK GREEN SAPHAN MAI - KUKOD 2017 7.0
DARK GREEN SAMUT PRAKARN - BANGPU 2017 7.0
LIGHT RED BANG SUE - PHAYATHAI - MAKKASAN 2017 9.0
LIGHT RED MAKKASAN - HUA MAK 2017 10.0
DARK RED RANGSIT -THAMMASART UNIVERSITY 2017 10.0
DARK RED BANG SUE - HUA LAMPHONG 2017 6.5
TOTAL (KM) 219.3
219.3KM ONGOING PROJECTS TO BE COMPLETED BY 2017, 104.1KM UNDER CONSTRUCTION
CORE AND EXTENSIONS TO OUR CURRENT LINES LINES CONNECTING TO OUR LINES
78.5km
22
BTS Group: Potential DEVELOPER of Mass Transit Extensions Focused on 4 extension lines; total length of 78.5km
D
BTSG Group General Presentation Section 2.1: Mass Transit Business
prepared by Investor Relations department BTS Group Holdings PCL
BTS Group: Potential DEVELOPER of Mass Transit extensions BTSG well positioned for new contracts
23
BTSG is WELL POSITIONED FOR NEW CONTRACTS
Relevant expertise Financial strength Green line advantage
New contracts are expected to be on a ‘PPP GROSS COST BASIS’
Operator to invest in civil works and E&M works with repayment from government Operator given operation contract Variations will be considered
Light Rail Transport (LRT) Bang Na – Suvarnabhumi 18.3km; completed by 2017
Dark Green South Line Bearing – Samut Prakarn 12.8 km; completed by 2017
Light Green Line National Stadium – Yodse
1.0 km; completed by 2019
Dark Green North Line Mo Chit – Saphan Mai
11.4 km; completed by 2017
Pink Line Khae Rai – Min Buri 36.0 km; completed by 2017
Dark Green North Line Kukod – Lamlukka 6.5 km; completed by 2019
Dark Green North Line Saphan Mai – Kukod
7.0 km; completed by 2017
Dark Green South Line Samut Prakarn – Bang Pu
7.0 km; completed by 2017
D
BTSG Group General Presentation Section 2.1: Mass Transit Business
*See Appendix 3 for details of CAPEX requirements
prepared by Investor Relations department BTS Group Holdings PCL
With 6 distinctive advantages, we are in very good position to achieve our vision
Green North (Mo Chit –
Saphan Mai)
Green South (Bearing –
Samut Prakarn)
Pink LRT
1) The only operator who can provide seamless services
~15-minute interchange time saved*
2) Lower project CAPEX
3) Lower O&M OPEX ~10% operating costs and 15% maintenance costs saved*
4) Proven track records • 13 years’ experience in running BTS core lines • Complete BTS core line construction in 35mths
5) Financial strength with THB 33bn excess liquidity
6) Financial flexibility from the new Warrant3
*compared between seamless model and shuttle service model
BTSG Group General Presentation Section 2.1: Mass Transit Business
24
prepared by Investor Relations department BTS Group Holdings PCL
Contents
25
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
TV 59.9%
In-Store 2.4%
Radio 7.0%
Outdoor 4.0%
Newspapers 13.3%
Transit 2.6%
Magazines 4.7%
Cinema 5.6%
Internet 0.5%
Source: The Nielsen Company (Thailand) Limited
Total market value of advertisement industry = THB 113,750mn
Thai media market overview (2012)
Source: The Nielsen Company (Thailand) Limited
Historical Thai ad expenditures (THB mn)
114 314
570 826 819 1,121
1,640
2,732
708 994 956
1,372
1,764
2,188 2,603
2,960 85,602 89,734 92,033 90,122 90,341
101,011 104,641 113,750
2005 2006 2007 2008 2009 2010 2011 2012
In-store Transit Total market
Top 10 ad spending by segments (FY 12/13)
Industry CAGR
4.1%
Transit CAGR
22.7%
In-store CAGR
57.4%
26 BTSG Group General Presentation Section 2.2: Media Business
Note: Excludes classified and house ads.
OVERALL MEDIA INDUSTRY 1 FMCG 41% 2 Motor vehicles 7% 3 Govt. & community announcement 6% 4 Communications 5% 5 Leisure 4% 6 Retail shops/stores 4% 7 Banks 3% 8 Real estate 3% 9 Insurance 2%
10 Food outlets & restaurants 2% TOP 10 78%
VGI MASS TRANSIT 1 FMCG 41% 2 Communications 9% 3 Food outlets & restaurants 4% 4 Travel & tours 4% 5 Real estate 4% 6 Retail shops/stores 4% 7 Leisure 4% 8 Photographic products 3% 9 Computers 3%
10 Banks 3% TOP 10 77%
VGI IN-STORE 1 FMCG 93% 2 Motor vehicle accessories 2% 3 Motor vehicles 1% 4 Photographic products 1% 5 Communications 0.4% 6 Food outlets & restaurants 0.3% 7 Pharmaceuticals 0.3% 8 Real estate 0.2% 9 Leisure 0.2%
10 Govt. & community announcement 0.2% TOP 10 78%
Source: The Nielsen Company (Thailand) Limited Note: Excludes classified and house ads.
Overview of Media Business
prepared by Investor Relations department BTS Group Holdings PCL
87
1
1,1
25
1,3
79
2010/11 2011/12 2012/13
BTS SkyTrain Media
27
Train Body Wrap
Digital Screen inside the train
Standard
Platform Truss
Pier Head
Merchandising Shop
BTS Media Revenue (THB mn)
CAGR (2 years) = 25.9%
KEY CONCESSION TERMS MERCHANDISING SPACE
BTS SkyTrain BTS Platform
Exclusive rights for 23 stations & all BTS trains In Trains & On-Stations Merchandising Area Additional areas
RIGHTS
First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space
18 May 2012 – 4 December 2029
EFFECTIVE PERIOD
CONCESSION FEE (PAYABLE TO BTSC)
5% - 20% of total revenues/year (an incremental increase of 5% every 5 years)
PAST SUCCESS
Exclusive rights for the core BTS SkyTrain Network
BTSG Group General Presentation Section 2.2: Media Business
MULTIMEDIA
STATIC
prepared by Investor Relations department BTS Group Holdings PCL
Modern Trade Media
28
KEY CONCESSION TERMS
RIGHTS
Exclusive rights for existing and upcoming branches Tesco Lotus Big C (including former Carrefour) Watsons (digital media)
LENGTH OF CONTRACT
3-5 years on average
LICENSE FEE
Mainly based on percentage of revenue sharing and minimum guarantee
PAST SUCCESS
Acquired exclusive rights to manage all advertising areas from Tesco Lotus and Big C, the top 2 players in the Modern Trade Retailer industry
Big surge in revenue (93% growth in FY 2011/12) mainly from sales floor areas, which account for over 70% of total Modern Trade Media revenue
Shelf Divider
Radio Media in Tesco Lotus & Big C
Shelf Frame
& Floor Sticker
Sensormatic
Health and Beauty Zone
Aisle Arch
STATIC MEDIA
Sales Floor Area Non-Sales Floor Area
DIGITAL MEDIA
Entrance Lightbox
BTSG Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
Office Building and Other Media
29
KEY CONTRACT TERMS
RIGHTS AND LENGTH OF CONTRACT
Office Buildings 75 buildings in CBD, 3-5 years contract (avg.) Outdoor LED (Selling Agent) 4 locations in Bangkok 1 year contract with renewable rights Chulalongkorn University (CU) Bus 15 buses and 15 bus-stops 1 year contract with renewable rights Airport Rail Link (Selling Agent) 9 trains, train body wrap, LCD in-train media, and 8 stations Contract expires in October 2021
LICENSE FEE
Revenue sharing and fixed rates
PAST SUCCESS
Changed to integrated network across all office buildings, increasing sales by 50%
Bundled Office Building Media with the Company’s other media and sold as a package, increasing occupancy and driving sales by 100%
Digital Screen in Elevators Platform Banister
Rama 9 Junction
Bus Body Wrap Bus Shelter
Patunam Junction
OFFICE BUILDING MEDIA AIRPORT LINK MEDIA
CHULALONGKORN UNIVERSITY (CU) BUS
OUTDOOR LED SCREENS
BTSG Group General Presentation Section 2.2: Media Business
prepared by Investor Relations department BTS Group Holdings PCL
Media Business: Financial Performance
30
Revenues by business unit
Operating EBITDA margin
Operating revenues and Operating EBITDA
Cost (% Rev) breakdown - FY 2012/13
(THB mn)
49.4% 57.4%
44.7% 38.5%
5.9% 4.1%
FY 12/13 FY 11/12
Office Buildings
Modern Trade
BTS-related
BTS MODERN
TRADE OFFICE BUILDING
AND OTHERS TOTAL
CONCESSION N/A 53% 18% 25%
DEPRECIATION (COST)
4% 3% 2% 4%
STAFF COSTS 2% 5% 1% 3%
OTHERS 7% 13% 8% 10%
TOTAL COST 13% 75% 29% 41%
FY 12/13 FY 11/12
OVERALL 51% 52%
BTS-RELATED 79% 78%
MODERN TRADE 16% 10%
OFFICE BUILDING & OTHERS 61% 60%
High Margins, No Leverage
BTSG Group General Presentation Section 2.2: Media Business
812 970
1,124 1,370
1,959
2,795
458 572 649 756 1,012
1,420
07/08 08/09 09/10 10/11 11/12 12/13
Operating Revenue Operating EBITDA
prepared by Investor Relations department BTS Group Holdings PCL
Contents
31
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
Property portfolio
32
Residential Book value of ~THB 2.4bn
Commercial Book value of ~THB 5.4bn
Land Bank* Book value of ~THB 3.6bn
TOTAL BOOK VALUE OF ~THB 11.4BN LAND FOR DEVELOPMENT ALONG MASS TRANSIT ROUTE
Location Total Area (Rai) Total Area (Sqm)
Bangkok 74.8 119,758.8
Samutprakarn 338.6 541,756.0
Nakorn Ratchasima 640.8 1,025,200.0
Chiang Mai and Chiang Rai 190.3 304,564.0
Phuket 37.3 59,740.0
Other Provinces 97.5 155,958.8
Total 1,379.3 2,206,977.6
Complete existing projects Open for joint-venture/divestment
ORGANIC GROWTH
LONG-TERM VISION
BTSG Group General Presentation Section 2.3: Property Business
EASTIN GRAND HOTEL
ABSTRACTS 66/1
PHAYATHAI: LAND BANK
SITE AREA: 5,664 SQM
MOCHIT: LAND BANK
SITE AREA: 25,113.2 SQM
ABSTRACTS PHY
THANA CITY GOLF & SPORTS CLUB
*as of 30 Sep 2013
prepared by Investor Relations department BTS Group Holdings PCL
Commercial and Residential Property
33
COMMERCIAL PROPERTY
RESIDENTIAL PROPERTY
LOCATION: SATHORN, BANGKOK
SITE AREA: 16-0-81 RAI
LAND TENURE: LEASEHOLD, 30 YEARS LEASE CONTRACT WITH TREASURY DEPARTMENT
SIZE: 3 FLR, 86 ROOMS
TOTAL GFA: 16,200 SQM
EXPECTED OPERATION OCT 2014
Debt THB 415mn USD 13mn
Equity THB275mn
USD 9mn
Equity THB275mn
USD 9mn
LOCATION: SATHORN, BANGKOK, DIRECT ACCESS TO BTS SURASAK
SITE AREA: 3,828 SQM (2-1-57 RAI)
LAND TENURE: FREEHOLD
SIZE: 33 FLR, 396 ROOMS
TOTAL GFA: 38,280 SQM
TOTAL NLA: 17,561 SQM
Debt THB 1.8Bn USD 57mn
Equity THB1.3Bb
USD 42mn
EASTIN GRAND SATHORN U SATHORN
LOCATION: 250M FROM NEW BTS STATION
SITE AREA: 33,420 SQM (20-3-55 RAI)
LAND TENURE: FREEHOLD
AVERAGE SALE PRICE: THB 75,000 PER SQM
LOCATION: 250M FROM BTS UDOMSUK
SITE AREA: 3,160 SQM (1-3-90 RAI)
LAND TENURE: FREEHOLD
AVERAGE SALE PRICE: 75,000 PER SQM
ABSTRACTS PHAHONYOTHIN PARK ABSTRACTS SUKHUMVIT 66/1
# UNITS GFA(SQM) NFA(SQM)
TOWER A 1,012 62,091 42,818
TOWER B 1,012 62,091 42,818
TOWER C 1,012 62,091 42,818
TOTAL 3,036 189,273 128,455
# UNITS GFA(SQM) NFA(SQM)
THE MOON 56 4,540 2,500
THE SUN 56 4,540 2,500
TOTAL 112 9,080 5,000
Deposit & Sales
proceed THB 93mn USD 3mn
Equity THB203mn USD 7mn
TDC: THB 296MN (USD 10MN) TDC: THB 2,527MN (USD 81MN)
TDC: THB 690MN (USD 22MN) TDC: THB 3.1BN (USD 99MN)
BTSG Group General Presentation Section 2.3: Property Business
Debt THB 1,697mm USD 54mn
Equity THB 732mn USD 24mn
Deposit & Sales proceeds THB 196mn USD 6mn
prepared by Investor Relations department BTS Group Holdings PCL
Contents
34
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
Overview of Services Business
35
Aim to provide common ticketing system across network >> Mass Transit – BTSC, BMCL, BRT, etc. >> Retail, Service and Tourism sectors
Received E-Money License from BOT Public launch on 1 May 2012
~2.0mn cards
Targeted potential rabbit cards base from BTSC and BMCL
passengers by Mar 2014
Joint venture originally founded between BTS and HHT Construction, a major HK contractor
Over 50 years of experience in delivering large complex construction projects on time and to the quality demanded by discerning clients
Responsible for project management of all BTS Group property projects
Partnership between BTS and experienced management team, whose track record include Four Seasons Samui & Chiang Rai & JW Marriott Phuket & Bangkok
Provide hospitality and consultancy services for hotel development across Asia
Currently manages 3 to 4 star hotels under “U” and “Eastin” brands
Number of hotels 30 44 Number of rooms 3,900 5,200 Under AHS contracts 2011/12 2012/13
BANGKOK SMART CARD SYSTEM ABSOLUTE HOTEL SERVICES (AHS)
BTSG Group General Presentation Section 2.4: Services Business
prepared by Investor Relations department BTS Group Holdings PCL
Contents
36
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
BTSG Financial Performance
37
(1) Operating EBITDA excludes non-recurring items but includes share of profit (loss) from BTSGIF (2) Net income attributable to equity holders of the parent (3) Operating EBITDA/finance cost (4) Interim and Final dividends, calculated on annual basis using BTS TB closing share price on the date
of the Board of Directors’ meeting approving the relevant dividend
Consolidated financials (THB mn)
3Q 13/14
FY 12/13 FY 11/12
FY 10/11
Operating revenues 2,115 10,375 7,720 5,893
Operating expenses 937 5,317 4,077 3,358
Non-recurring items 43 897 1,189 641
EBITDA 1,301 3,185 3,688 3,206
Operating EBITDA(1) 875 5,081 4,141 2,549
Net income(2) 449 1,974 2,106 252
Key financial ratios 3Q 13/14 FY 12/13 FY 11/12 FY 10/11
Profitability ratios (%)
Gross operating profit margin 55.7% 48.8% 47.2% 43.0%
SG&A to operating sales ratio 20.4% 16.6% 15.8% 21.7%
Accounting EBITDA margin 54.0% 79.5% 74.4% 47.0%
Operating EBITDA margin(1) 41.3% 49.0% 53.6% 43.3%
Recurring net profit margin (%) 22.5% 19.0% 13.2% -5.5%
Leverage (Times)
Total liability to total asset 0.21x 0.25x 0.45x 0.41x
Total liability to total equity 0.27x 0.33x 0.81x 0.70x
Net debt to equity (0.07)x 0.17x 0.67x 0.56x
Net debt to operating EBITDA (1.04)x 4.46x 5.97x 8.19x
Interest coverage(3) 6.54x 4.07x 2.89x 1.59x
Per share ratios (THB per share)
Book value per share 5.35 5.05 4.05 4.48
Dividend yield (4) 7.45%* 4.71% 6.38% 5.00%
5,032
1,959 728
1
7,720
6,016
2,795 1,523
43
10,375
MassTransit
Media Property Services Total
FY 11/12
FY 12/13
REVENUE CONTRIBUTION BY BUSINESS UNIT
REVENUE COMPARISON BY BUSINESS UNIT
58%
Mass Transit
27%
Media
15%
Property
0%
Services
BTSG Group General Presentation Section 3: Financial Summary
FY 2012/13
* Based on last 12 months dividend per share divided by closing share price on 11 Feb 2014
prepared by Investor Relations department BTS Group Holdings PCL
prepared by Investor Relations department BTS Group Holdings PCL
50,501.7 63,634.6
7,767.3 8,332.9 9,021.9 8,543.0
31-Mar-13 31-Dec-13
Equity Structure
38
LIABILITIES AND EQUITY
DILUTION IMPACT
SHAREHOLDER’S EQUITY
THB mn
Registered Capital (15,913.1mn shares @ THB 4.0)
63,653
Issued and paid-up (11,914.2mn shares @ THB 4.0)
47,657
Others 10,225
Retained earnings (Deficits) 5,752
Total Shareholders’ Equity 63,635
as of 31 Dec 2013
Type No. of outstanding
warrants (mn) Exercise ratio
(warrant : share) Exercise price (THB)
No. of shares (mn)
% Dilution
BTS-WA 100 1 : 0.16 4.375 16.0 0.1%
BTS-WB 16 1 : 1 5.01 16.0 0.1%
BTS-W3 3,972 1 : 1 12.00 3,971.6 24.0%
Total 4,080.0 24.9%
BTSG Group General Presentation Section 3: Financial Summary
67,291 80,511 (THB mn)
Equity
Current liabilities
Non-current liabilities
prepared by Investor Relations department BTS Group Holdings PCL
2013/14 Targets and CAPEX
39
SERVICES
MEDIA MASS TRANSIT
PROPERTY
5X4-Car Delivery by FY 13/14
6.5% Effective Fare Increase
7-10% Ridership Growth 30% Revenue Growth
Revenue of ~THB2.4bn from Abstracts Projects
~75% Hotel Occupancy Rate 2mn Rabbit Cards
THB 1,300MN CAPEX
THB 570MN CAPEX
THB 950MN CAPEX
THB 100MN CAPEX
FY 13/14 TOTAL CAPEX
THB 2,920MN
BTSG Group General Presentation Section 3: Financial Summary
prepared by Investor Relations department BTS Group Holdings PCL
Contents
40
Section 1 BTS Group Holdings PCL
Section 2 Group Profile
Section 2.1 Mass Transit Business
Section 2.2 Media Business
Section 2.3 Property Business
Section 2.4 Services Business
Section 3 Financial Summary
Appendices
Appendix 1: Shareholding Structure
Appendix 2: Key Terms of the Core Network Concession Agreement
Appendix 3: Future Funding Requirements (Mass Transit)
Appendix 4: BTS-W3
Appendix 5: Saphan Taksin Station Removal
Appendix 6: BTSC’s Quality Management System
Appendix 7: Fare Adjustment History – Bangkok Concessions
BTSG Group General Presentation
prepared by Investor Relations department BTS Group Holdings PCL
50%
THANA CITY GOLF & SPORTS CLUB CO., LTD.
Appendix 1: Shareholding Structure
41
1 Information based on the close book date as at 28 Jan 14 with total issued shares = 11,914.2mn shares 2 Major subsidiaries and associates only 3 BTSG holds 60.5% of VGI indirectly and directly
OTHERS
2.5% , 407.7 mn shares
BTSGIF
33.3%
BTSG Group General Presentation Appendix 1: Shareholding Structure
100%
YONGSU CO., LTD.
KANJANAPAS FAMILY OTHERS
BTSC
MASS TRANSIT2 MEDIA2 PROPERTY2 SERVICES2
INSTITUTIONAL INVESTORS 1
10.8%
41.7%1 21.8%1 36.5%1
BTS GROUP
97.5%
VGI GLOBAL MEDIA PCL
BTS LAND CO., LTD.
NUVOLINE AGENCY CO., LTD.
BTS ASSETS CO., LTD.
HHT CONSTRUCTION CO., LTD.
ABSOLUTE HOTEL SERVICES CO., LTD.
BANGKOK SMARTCARD SYSTEM CO., LTD.
100%
51%
90%
51.0%3
VGI ADVERTISING MEDIA CO., LTD.
999 MEDIA CO., LTD.
888 MEDIA CO., LTD.
POINT OF VIEW (POV) MEDIA GROUP CO., LTD.
VGI MULTI-TECH INTERNATIONAL CO., LTD.
VGI ADVERTISING CHINA CO., LTD.
100%
100%
100%
100%
100%
100%
KAMKOONG PROPERTY CO., LTD.
DNAL CO., LTD.
MUANGTHONG ASSETS CO., LTD.
TANAYONG FOOD & BEVERAGE CO., LTD.
TANAYONG PROPERTY MANAGERMENT CO., LTD.
SIAM PAGING AND COMMUNICATION
CO., LTD.
PRANNAKIRI ASSETS CO., LTD.
TANAYONG INTERNATIONAL LIMITED
TANAYONG HONG KONG LIMITED
ABSOLUTE HOTEL SERVICES HONG KONG LIMITED
CARROT REWARDS CO., LTD.
100%
100%
75.5%
100%
100%
100%
100%
100%
100%
SAM PAO PETCH CO., LTD.
100%
80%
100%
100%
100%
100% MAN KITCHEN CO., LTD.
Listed entities
70%
12.3%
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 2: Core Network Concession Agreement Key terms and background
42
BTS SKYTRAIN
BTSC BMA
EXCLUSIVE OPERATION RIGHT
CONCESSION AGREEMENT
MINISTRY OF
INTERIOR
AUTHORISATION
BTS SKYTRAIN
BTSC BMA
EXCLUSIVE OPERATION RIGHT
CONCESSION AGREEMENT
MINISTRY OF
INTERIOR
AUTHORISATION
BTSGIF NET REVENUE TRANSFER AGREEMENT
23 STATIONS, 23.5 KM IN CBD
Connecting Bangkok’s most important business and tourist destinations, serving as the backbone to all Bangkok’s mass transit systems
ALL INVESTMENTS MADE BY BTSC
Including civil works, E&M and trains (except land acquisition) from private sector sources. BTO for civil works, BOT for electrical and mechanical works, including trains
30 YEARS CONCESSION
30 years of concession period ending 4 Dec 2029, approximately 17 years remaining
NO REVENUE SHARING OR CONCESSION FEES FOR BMA
Exclusive right to operate and retain all farebox revenues from BTS SkyTrain System during the period of the concession
SCOPE
Procuring, operating and maintaining the mass transit system. BTS has the right to earn revenues from the business related to the BTS Sky Train's system including advertisement, sublicensing and fare collection for 30 years commencing from 5 Dec 1999
EXTENSIONS
BTS must inform the BMA of such intent at least 3 years (< 5 years) prior to the expiration of the Concession Agreement. The extension is subject to the prior approval of the Interior Minister. BTS is granted a ROFR for negotiations with BMA to construct and operate such network extensions or new routes, provided that BTS matches the best price offered by other potential investors.
BTSG Group General Presentation Appendix 2: Core Network Concession Agreement
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 3: Future Funding Requirements (Mass Transit) BTS Pipeline
CAPEX BREAKDOWN FOR CIVIL WORKS AND E&M OF 4 EXPECTED FUTURE LINES
PPP GROSS COST CIVIL WORKS + E&M
Total CAPEX for 4 lines = THB 116.8bn with D/E Ratio = 1.5 : 1 Total equity required = THB 46.7bn
36,514
9,494
50,770
20,000
134,616
21,775 23,390 11,927
57,092
9,494
14,739
27,380
8,073
59,686
Dark Green(Bearing - Samut
Prakarn)
Dark Green(Mo Chit -
Saphan Mai)
Pink(Kae Rai - Min
Buri)
LRT(Bang Na -
Suvarnabhumi)
Total
E&M Civil works
116,788 THB mn
BTSG Group General Presentation
Appendix 3: Future Funding Requirements (Mass Transit) 43
prepared by Investor Relations department BTS Group Holdings PCL
35,000
10,000 (21,000)
(19,000)
(46,711)
Net Cash 3-Year Earnings 3-Year Dividend Plan Additional Dividend(Years 4&5)
Equity Requirement(D/E 1.5x)
3-year projected FCF Assumed Committed 3-year dividend plan
Total shortfall = THB 41,711mn
THB mn
Appendix 3: Future Funding Requirements (Mass Transit) Total expected shortfall of THB 41,711mn
BTSG Group General Presentation Appendix 3: Future Funding Requirements (Mass Transit)
44
Remarks: The dividend payment for Years 4&5 are just assumed figures and DO NOT represent the Company’s actual commitment.
prepared by Investor Relations department BTS Group Holdings PCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
(12,357) (12,733) (13,121)
-1,089 -974 -860 -745 -630 -516 -401 -287 -172 -57 1 2 3 4 5 6 7 8 9 10 11 12 13
E&M + Civil Investment Cost Interest expense Reimburse from Gov. Interest Income from Gov.
Appendix 3: Future Funding Requirements (Mass Transit) PPP Gross Cost (Civil Works and E&M) – Dark Green North
134,616 THB mn
FINANCING AND REPAYMENT OF CIVIL WORKS AND E&M
O&M REVENUE
KEY ASSUMPTIONS
1) 3-year investment period 2) 10-year repayment from
govt. 3) Interest rate (neutral) 4) D/E of 1.5x
KEY ASSUMPTIONS
1) 30-year contract from operating date
2) O&M revenue of THB 141mn/km in FY 16/17 with growth rate of 3.5% p.a.
3) EBITDA margin of 40% 4) Tax holiday of 8 years
YEAR
YEAR
5,386 5,203 5,021 4,838 4,655 4,473 4,290 4,108 3,925 3,743
BTSG Group General Presentation
Appendix 3: Future Funding Requirements (Mass Transit) 45
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 4: BTS-W3 Term Sheet
46
TICKER BTS-W3
TERMS 5 YEARS
ISSUE DATE 1 NOV 2013
EXPIRY DATE 1 NOV 2018
EXERCISE PERIOD QUARTERLY STARTING FROM DEC 2016 TO SEP 2018 WITH THE LAST EXERCISE DATE ON 1 NOV 2018 (TOTAL 9 TIMES)
WARRANT PRICE -
ALLOCATION TO EXISTING SHAREHOLDERS AT THE RATIO OF 3 BTS EXISTING SHARES : 1 BTS-W3
NO. OF WARRANTS 3,971,617,378 UNITS
EXERCISE RATIO 1 BTS-W3 TO 1 NEW COMMON SHARE OF BTS
EXERCISE PRICE THB 12.00 PER SHARE
EXPECTED MAXIMUM
PROCEEDS THB 47,659MN
WARRANTS TERMS AND CONDITIONS
BTSG Group General Presentation Appendix 4: BTS-W3
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 5: Saphan Taksin Station Removal
BRIEF INFORMATION
• All costs in relation to station removal & dual track construction covered by BMA
• All costs in relation to walkway construction paid for by BMA
• Walkway construction will take approx 1 year to complete
• Station removal & dual track construction will take approx 1 year to complete
• No service interruption expected in walkway construction & station removal
• No significant impact to BTS SkyTrain core revenue and core cost expected
S5 S6
S7
SURASAK SAPHAN TAKSIN KRUNG THON BURI
BTSG Group General Presentation Appendix 5: Saphan Taksin Station Removal
47
prepared by Investor Relations department BTS Group Holdings PCL
Appendix 6: BTSC’s Quality Management System
48
OCCUPATIONAL HEALTH AND SAFETY ZONE CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
OHSAS 18001 : 2007
QUALITY MANAGEMENT SYSTEMS CERTIFICATE ACCREDITED BY BUREAU VERITAS CERTIFICATION (THAILAND) LTD. (BV).
ISO 9001 : 2008
LLOYDS REGISTER RAIL’S BEST PRACTICE MODEL IMPLEMENTATION.
LLOYDS REGISTER RAIL
BTSG Group General Presentation Appendix 6: BTSC’s Quality Management System
prepared by Investor Relations department BTS Group Holdings PCL
10 10 10 10 10 10 10 10
15 15 15 15 15 15
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0.0% CAGR
4.6% CAGR
Appendix 7: Fare Adjustment History – Bangkok Concession
49
BTS (THB) BMCL (THB)
BECL (THB) DON MUANG TOLLWAY (THB)
max
min
2004 2005 2006 2007 2008 2009 2010 2011 2012
1.2% CAGR
1.5% CAGR
max
min
30 30 30 30 30
40 40 40 40 40 40 40 40 40 40 45 45 45 45 45
2.6% CAGR 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35
60 60 60 60
3.4% CAGR
BTSG Group General Presentation Appendix 7: Fare Adjustment History – Bangkok Concession
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